Humber/Ontario Real Estate Course 3 Exam Practice

Which statement is NOT correct when attaching a schedule to the preprinted agreement of purchase and sale?

1. A buyer must initial the attached schedule

2. Reference to the schedule should be on the first page

3. No need for cross-reference details in the schedule

4. Schedules added can override preprinted clauses

5. Include schedule reference in the preprinted agreement

6. Attached schedules follow after the final page of the agreement

The correct answer is: No need for cross-reference details in the schedule

The correct answer is that there is indeed a need for cross-reference details in the schedule. When attaching a schedule to the preprinted agreement of purchase and sale, it's essential to ensure that the schedule is properly linked to the relevant sections of the main agreement. This allows for clarity and confirms the intent of the parties involved regarding the modifications or additions that the schedule entails. Cross-referencing details help avoid any ambiguity about which parts of the original contract the schedule affects. For instance, referring back to specific clauses ensures that everyone is on the same page regarding how the modifications apply and reinforces the enforceability of those changes. The other statements focus on the proper format and considerations when it comes to attaching a schedule, such as the necessity for the buyer to initial it, ensuring there's a reference on the first page, and including the schedule right after the final page. This delineation of procedures is crucial for maintaining the integrity of the purchase agreement.